Tighter Rule Affects Franchisors that Target Children

Beware, franchisors that specifically market to children under the age of 13. Tighter rules are now in effect regarding information they can and can’t collect.

As of July 1, an amendment to the Children’s Online Privacy Protection Act is in effect. It tightens up the rules around parental notice and consent requirements.

The amendment is aimed at closing what the Federal Trade Commission perceived to be a loophole through which third parties were able to skirt those notice requirements. They would not collect the child’s name and address as the act prohibits, but instead use plug-ins, kid-directed apps and other websites to collect personal identifiers.

Franchisors “should review the information they collect from children under the age of 13, and make certain their protocols are broad enough” to comply with the revised rule, advise attorneys at Cheng Cohen in Chicago.